The company's strategic shift to high-margin products and the launch of VLN products are positive steps, but the delay in achieving profitability and potential cash flow issues present significant challenges.
Company Guidance
In the recent earnings call, 22nd Century Group provided guidance indicating that the company expects to achieve profitability in the first half of 2026, contingent upon the successful market penetration of its high-margin branded products, including VLN and Partner VLN SKUs. The company is shifting away from low-margin contract manufacturing operations (CMO) to focus on expanding distribution and customer adoption of its proprietary low nicotine products. Despite current net revenue of $4 million and a net loss from continuing operations at $3.3 million for Q2 of 2025, 22nd Century anticipates gross margin improvements and steady revenue growth as it cycles out of its lower-margin business. The company has reduced its debt by $1 million and improved its working capital management. However, there might be a need for additional fundraising to support operations until profitability is reached. The company remains confident in renewing its Modified Risk Tobacco Product (MRTP) status and is actively engaged in a lawsuit against Dorchester Insurance Company for a $9 million business interruption claim, with a trial date set for November 2025.
Launch of VLN Products
22nd Century began shipping Pinnacle VLN in August, marking the largest single deployment of VLN products in the company's history. This launch aligns with the FDA's low nicotine standard.
Shift to High-Margin Branded Products
The company is transitioning from low-margin CMO business to high-margin branded products, including VLN and Partner VLN, aiming to achieve better gross margins.
Debt Reduction
22nd Century reduced its debt by approximately $1 million during the second quarter.
22nd Century (XXII) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
XXII Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Aug 14, 2025
$2.67
$2.40
-10.11%
May 13, 2025
$24.61
$26.45
+7.48%
Mar 20, 2025
$43.70
$42.55
-2.63%
Nov 12, 2024
$319.81
$312.05
-2.43%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does 22nd Century (XXII) report earnings?
22nd Century (XXII) is schdueled to report earning on Nov 05, 2025, After Close (Confirmed).
What is 22nd Century (XXII) earnings time?
22nd Century (XXII) earnings time is at Nov 05, 2025, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.